Evaluation of The Financial Feasibility of Western Elmatamma Agricultural Scheme In the Upper Terraces of The River Nile State

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Elkarouri, Huda Abdalla Mohamed Osman
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T The purpose of this study is to evaluate the financial feasibility of private sector inves tments in the upper terraces of River Nile State. The study came with the following findings , The study depended on primary and secondary data for analysis. The primary data was collected by the scheme owners and from official and private sector sources for the season 2001-2002. The secondary data was obtained from official documents and reports of the State, Ministry of Agriculture in the River Nile State. The study used the farm budget and the financial benefit-cost analysis for evaluating the financial feasibility of the project. From the results of the budget analysis it appeared that bar seem crop had incurred the highest gross margin return followed by chick-pea, broad bean, haricot bean, wheat and maize respectively. The financial analysis indicated that the project had a marginal financial feasibility with the pay back period (PBP) of 8 years and with a net present value (NPV) of about SD 4038 million, benefit-cost ratio (B/C ratio) 1.10% and internal rate of return (IRR) of 14.3. The scheme was not feasible after subjecting it to the sensitivity analysis. Of increasing the total cost by 20% and reducing the total benefit by 20% by IRR 11.2% and 10.3 respectively. A scenario of reducing the irrigation cost by 40% improved the financial feasibility of the project. The study recommended that promotion of investments in upper terraces will not be successful unless a low cost irrigation system is introduced. If such irrigation services were achieved this would encourage expansion of legumes crop, and rehabilitation of wheat in the River Nile State
95 page
Financial,River Nile State